AgeX Therapeutics(AGE) - 2024 Q2 - Quarterly Report

Financial Performance - Revenues for the three and six months ended June 30, 2024, were not material, indicating a focus on development rather than immediate revenue generation [229]. - The company incurred a net loss of $9.8 million for the six months ended June 30, 2024, with non-cash items affecting cash flow [251]. - The company had an accumulated deficit of $23.2 million as of June 30, 2024, indicating ongoing financial challenges [243]. - The net cash used in operating activities for the six months ended June 30, 2024, was $9.6 million, a significant increase of 509.4% from $1.573 million in the same period in 2023 [250]. - Other income, net for the three months ended June 30, 2024, was $9.04 million, compared to $1.75 million in the same period in 2023, reflecting a change of $7.3 million [235]. Research and Development Expenses - Research and development expenses increased to $1.6 million for Q2 2024, up 232.8% from $0.5 million in Q2 2023, primarily due to severance and payroll-related expenses [227]. - For the six months ended June 30, 2024, research and development expenses totaled $2.7 million, reflecting a 207.5% increase from $0.9 million in the same period of 2023 [228]. - The company anticipates a substantial increase in research and development expenses as it continues to invest in clinical trials and product development [217]. - The company expects to continue incurring losses and will require additional financing to support ongoing operations and product development [246]. - The company anticipates that its research and development expenses will continue to increase, necessitating further capital raising efforts [248]. General and Administrative Expenses - General and administrative expenses rose to $2.3 million for Q2 2024, a 391.1% increase from $0.5 million in Q2 2023, driven by legal and accounting services related to the recent merger [227]. - General and administrative expenses for the six months ended June 30, 2024, were $3.5 million, a 232.4% increase from $1.1 million in the same period of 2023 [228]. - The increase in general and administrative expenses is also attributed to costs associated with being a public company, including compliance and investor relations [224]. - General and administrative expenses increased to $3.5 million for the six months ended June 30, 2024, from $1.1 million in the same period in 2023, a rise of 218.2% [234]. - A non-recurring severance expense of $0.3 million contributed to the increase in both research and development and general administrative expenses [230][233]. Cash and Financing Activities - Cash and cash equivalents stood at $6.1 million as of June 30, 2024, with additional expected proceeds of $9.975 million from the exercise of Post-Merger Warrants [241]. - Net cash provided by financing activities for the six months ended June 30, 2024, was $8.1 million, primarily from the exercise of Post-Merger Warrants and credit facilities [253]. - The fair value of liability classified Merger Warrants resulted in a gain of $3.7 million during the six months ended June 30, 2024, compared to nil in the same period in 2023 [237]. - The company is expanding its workforce and infrastructure to support ongoing research and development efforts [223]. - The company expects to face significant costs and uncertainties in obtaining regulatory approvals for its product candidates [218].